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प्रश्न
Deceased partners share of profit up to the death is shown on ____________ side of Balance Sheet.
उत्तर
Deceased partner's share of profit up to the death is shown on assets side of the Balance Sheet.
APPEARS IN
संबंधित प्रश्न
Answer in one sentence only.
What is the gain ratio?
Give a word/term/phrase which can substitute the following statements :
The partner who died.
Answer in one sentence only.
What is gain ratio or benefit ratio ?
Profit and Loss Suspense Account is shown in the new Balance Sheet on __________ side.
Write a word, term, phrase, which can substitute the following statement.
Excess of credit side over the debit side of profit and loss adjustment account.
Write a word, term, phrase, which can substitute the following statement.
A Person who represents the deceased partner on the death of the Partner.
Write a word, term, phrase, which can substitute the following statement.
Accumulated past profit kept in the form of reserve.
Write a word, term, phrase, which can substitute the following statement.
The Partner who died.
State whether the following statement is True or False with reason.
A deceased partner is not entitled to the Goodwill of the firm.
State whether the following statement is True or False with reason.
A deceased partner is entitled to his share of General Reserve.
State whether the following statement is True or False with reason.
For recording the Profit or Loss up to the date of death, Profit and Loss Appropriation Account is operated.
Deceased partner’s executor's account is shown on the ___________ side of the Balance Sheet.
Answer in one sentence only.
In which ratio General Reserve is distributed on death of a partner?
Answer in one sentence only.
How the death of a partner is a compulsory retirement?
Rahul, Rohit, and Ramesh are in a business sharing profits and losses in the ratio of 3: 2: 1 respectively. Their balance sheet as on 31st March 2017 was as follows.
| Balance Sheet as on 31st March 2017 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital Account: | Debtors | 1,00,000 | ||
| Rahul | 2,20,000 | Less: R.D.D. | 10,000 | 90,000 |
| Rohit | 2,10,000 | Plant and Machinery | 85,000 | |
| Ramesh | 2,40,000 | Investment | 3,50,000 | |
| Creditors | 80,000 | Motor lorry | 1,00,000 | |
| Bills Payable | 7,000 | Building | 80,000 | |
| General Reserve | 96,000 | Bank | 1,48,000 | |
| 8,53,000 | 8,53,000 | |||
On 1st October 2017, Ramesh died and the Partnership deed provided that
- R.D.D. was maintained at 5% on Debtors
- Plant and Machinery and Investment were valued at ₹ 80,000 and ₹ 4,10,000 respectively.
- Of the creditors, an item of ₹ 6000 was no longer a liability and hence was properly adjusted.
- Profit for 2017-18 was estimated at ₹ 120,000 and Ramesh share in it up to the date of his death was given to him.
- Goodwill of the Firm was valued at two times the average profit of the last five years. Which were
Ramesh share in it was to be given to him2012-13 ₹ 1,80,000 2013-14 ₹ 2,00,000 2014-15 ₹ 2,50,000 2015-16 ₹ 1,50,000 2016-17 ₹ 1,20,000 - Salary 5,000 p.m. was payable to him
- Interest on capital at 5% i.e. was payable and on Drawings ₹ 2000 were charged.
- Drawings made by Ramesh up to September 2017 were ₹ 5,000 p.m.
Prepare Ramesh’s Capital A/c showing the amount payable to his executors
Give Working of Profit and Goodwill
Ramesh’s executors loan A/c ₹ 3,41,000
The Balance Sheet of Sohan, Rohan and Mohan who were sharing profits and Losses in the ratio of 3:2:1 as follows.
| Balance Sheet as on 31st March 2019 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Bank Overdraft | 18,000 | Bank | 48,000 |
| Creditors | 85,000 | Debtors | 30,000 |
| Bills payable | 40,000 | Land and Building | 40,000 |
| Bank Loan | 1,50,000 | Machinery | 80,000 |
| General Reserve | 27,000 | Investments | 40,000 |
| Capital Account: | Computers | 40,000 | |
| Sohan | 20,000 | Stock | 90,000 |
| Rohan | 20,000 | Patents | 12,000 |
| Mohan | 20,000 | ||
| 3,80,000 | 3,80,000 | ||
Mr. Rohan died on 1st October 2019 and the following adjustments were made.
- Goodwill of the firm is valued at ₹ 30,000.
- Land and Building and Machinery were found to be undervalued by 20%.
- Investments are valued at ₹ 60,000
- Stock to be undervalued by ₹ 5000 and a provision of 10% as debtors were required.
- Patents were valueless.
- Mr. Rohan was entitled to share in profits up to the date of death and it was decided that he may be allowed to retain his drawings as his share of profit. Rohan’s drawings till the date of death was ₹ 25000.
Prepare Partners' capital accounts.
Anil, Sunil and Mohit were partners sharing profits and losses in the proportion of their capital Their Balance Sheet as on 31st March, 2019 was as follows:
| Balance Sheet as on 31st March, 2019 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital Accounts: | Land and Building | 80,000 | ||
| Anil | 60,000 | Motor Lorry | 40,000 | |
| Sunil | 40,000 | Debtors | 32,000 | 28,000 |
| Mohit | 20,000 | Less: R.D.D. | (4,000) | |
| Creditors | 50,000 | Furniture | 36,000 | |
| Outstanding Salary | 6,000 | Bank | 28,000 | |
| Reserve fund | 36,000 | |||
| 2,12,000 | 2,12,000 | |||
Mohit died on 1st August. 2019 and the following adjustments were made:
(1) Assets to be revalued as under:
| Land and Building | ₹ 88,000 |
| Motor Lorry | ₹ 36,000 |
| Furniture | ₹ 34,000 |
(2) All debtors were good.
(3) Goodwill of the firm valued at two times the average profit of lost 4 years' profit.
(4) Mohit's share of profit is to be calculated on the basis of average profit of the last three years.
(5) Profit for four years 1st year ₹ 12,000, 2nd year ₹ 24,000, 3rd year ₹ 14,000, 4th year ₹ 22,000.
Prepare:
- Mohit's capital account showing amount payable to his executor.
- Give working note of Mohit's share of goodwill and profit up to the date of his death.
Rakesh, Mahesh & Mukesh were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Balance Sheet as on 31st March, 2019 as under:
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital A/c: | Plant & Machinery | 40,000 | ||
| Rakesh | 30,000 | Motor Truck | 20,000 | |
| Mahesh | 20,000 | Investment | 18,000 | |
| Mukesh | 10,000 | |||
| Bank Loan | 20,000 | Debtors | 16,000 | 14,000 |
| Creditors | 8,000 | Less: RDD | 2,000 | |
| Bills Payable | 18,000 | Bank | 14,000 | |
| 1,06,000 | 1,06,000 |
Mukesh Died on 30th June, 2019 and following adjustments were made:
- Assets were revalued as: Plant & Machinery ₹ 44,000, Motor Truck ₹ 18,000, Investment ₹ 17,000.
- All debtors were good.
- Goodwill of the firm valued at two times the average profits of the last five years. No Goodwill account to be shown in the books of the firm.
- Mukesh's share of profit up to his death to be calculated on the basis of average profits last two years.
- Five years Profits were - I year ₹ 6,000, II year ₹ 11,000, III year ₹ 7,000, IV year ₹ 12,000, V year ₹ 24,000 respectively.
Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet as on 1 st July, 2019.
Deceased partner share of profit up to the death is shown on ______ side of Balance Sheet.
Arun, Varun and Karun were partners in a business sharing profits and losses in the ratio of 2 : 2: 1 respectively. Their Balance sheet as on 31st March, 2019 was as under :
| Balance Sheet as on 31st March,2019 | ||||
| Liabilities | Amount ₹ | Assets | Amount ₹ | |
| Capital Account: | Land and Building | 27,900 | ||
| Arun | 20,000 | Investment | 15,000 | |
| Varun | 20,000 | Furniture | 8,000 | |
| Karun | 10,000 | Debtors | 10,400 | 10,000 |
| Creditors | 16,000 | Less: R.D.D | 400 | |
| Bank Loan | 4,000 | Bank | 4,100 | |
| Goodwill | 5,000 | |||
| 70,000 | 70,000 | |||
On 1st July, 2019 Karun died and the following adjustments were made:
- All the debtors were considered as good.
- Bank Loan were paid off.
- Furniture was depreciated by ₹ 550.
- Investments were sold out in the Market at 10% profit.
- Goodwill of the firm was valued at ₹ 7,500. It was to be raised in the books.
- Karun was entitled to get his share in the profit up to the date of his death. Profit for 2019-2020 was estimated at ₹ 5,000.
- The amount due to Karun’s Executor was paid by NEFT.
Prepare:
- Profit and Loss Adjustment A/c.
- Partners’ Capital Account.
- Balance sheet of New Firm.
M, N and O were equal partners on 31st March, 2023. Their Balance Sheet was as follows 31st March, 2023.
| Balance Sheet as on 31st March, 2023 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capital Accounts : | Land and Building | 4,80,000 | |
| M | 6,00,000 | Furniture | 3,60,000 |
| N | 2,40,000 | Debtors | 3,60,000 |
| O | 2,40,000 | Stock | 1,20,000 |
| Sundry Creditors | 1,08,000 | Cash | 1,20,000 |
| Bills Payable | 72,000 | ||
| Bank Loan | 1,80,000 | ||
| 14,40,000 | 14,40,000 | ||
M died on 30th June, 2023 and the following adjustments were agreed as:
(1) Furniture was to be adjusted to its market price of ₹ 4,08,000.
(2) Land and Building was to be depreciated by 10%.
(3) Provide R.D.D. @ 5% on Debtors.
(4) The profit up to the date of death of M is to be calculated on the basis of last years profit which was ₹ 2, 16,000.
Prepare Profit and Loss Adjustment A/c, Partners' Capital Accounts A/c and Balance Sheet of the continuing firm.
A person who died is known as ______.
Het, Heet and Hari are partners sharing profits and losses in the ratio 5 : 3 : 2 respectively. Their Balance Sheet as on 31st March, 2023 was as follows:
| Balance Sheet as on 31st March, 2023 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| General Reserve | 35,000 | Goodwill | 70,000 |
| Creditors | 1,40,000 | Loose Tools | 70,000 |
| Unpaid Rent | 35,000 | Debtors | 2,10,000 |
| Capital Accounts: | Livestock | 1,40,000 | |
| Het | 1,40,000 | Cash | 35,000 |
| Heet | 1,05,000 | ||
| Hari | 70,000 | ||
| 5,25,000 | 5,25,000 | ||
Hari died on 3lst July, 2023 and the following adjustments were agreed by as per partnership deed:
(1) Creditors have increased by ₹ 14,000.
(2) Goodwill is to be calculated at 2 years purchase of average profits of 5 years.
(3) The profits of the preceding 5 years was
| 2018-19 | ₹ 1,26,000 |
| 2019-20 | ₹ 1,40,000 |
| 2020-21 | ₹ 84,000 |
| 2021-22 | ₹ 70,000 |
| 2022-23 | ₹ 70,000 (Loss) |
Hari's share in it was to be given to him.
(4) Loose Tools and Livestock were valued at ₹ 1,12,000 and ₹ 1,68,000 respectively.
(5) R.D.D. was maintained at ₹ 14,000.
( 6) Commission ₹ 2,800 p.m. was payable to Hari. Profit for 2023-24 was estimated at ₹ 63,000 and Bari's share in it up to the date of his death was given to him.
Prepare Revaluation Ale, Bari's Capital Ale showing the amount payable to his executors.
The Balance Sheet of Karma, Punya and Bandhan who were sharing Profits and Losses in the ratio of 3 : 2 : 1 is as follows:
| Balance Sheet as on 31st March, 2022 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Bank Overdraft | 27,000 | Bank | 72,000 |
| Creditors | 1,27,500 | Debtors | 45,000 |
| Bills Payable | 60,000 | Land and Building | 60,000 |
| Bank Loan | 2,25,000 | Machinery | 1,20,000 |
| General Reserve | 40,500 | Investments | 60,000 |
| Capital Accounts: | Computers | 60,000 | |
| Karma | 30,000 | Stock | 1,35,000 |
| Punya | 30,000 | Patents | 18,000 |
| Bandhan | 30,000 | ||
| 5,70,000 | 5,70,000 | ||
Punya died on 1st October, 2022 and the following adjustments were made:
(1) Goodwill of the firm is valued at ₹ 45,000.
(2) Land & Building and Machinery were found to be undervalued by 20%.
(3) Investments are valued at ₹ 90,000.
(4) Stock to be undervalued by ₹ 7,500 and a provision of 10% as Debtors was required.
(5) Patents were valueless.
(6) Punya was entitled to share in profits up to the date of death and it was decided that he may be allowed to retain his drawings as his share of profit. Punya's drawings till date of death was ₹ 37,500.
Prepare Partner's Capital Accounts.
Suresh, Naresh and Paresh were equal partners. On 31st March, 2019 their Balance sheet was as follows:
| Balance Sheet as on 31st March, 2019 | |||
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
| Capital Accounts: | Land and Building | 2,00,000 | |
| Suresh | 2,50,000 | Furniture | 1,50,000 |
| Naresh | 1,00,000 | Debtors | 1,50,000 |
| Paresh | 1,00,000 | Cash | 1,00,000 |
| Sundry creditors | 1,50,000 | ||
| 6,00,000 | 6,00,000 | ||
Suresh died on 30th June, 2019 and the following adjustments were agreed as:
- Furniture was to be adjusted to its market price of ₹ 1,70,000.
- Land and building was to be depreciated by 10%.
- Provide R.D.D. at 5% on debtors.
- The profit up to the date of death of Suresh is to be calculated on the basis of average profit of last year which was ₹ 90,000.
Prepare:
- Profit and loss adjustment account.
- Partners’ capital account.
- Balance sheet of the continuing firm.
